Connect with us

Brief Principles for a Resilient External Equity Manager Program

Published

on

The majority of external managers including employed traders and analysts have most of their time spent towards the investment management process or at least they should. Choosing the right selection of investment managers is a challenging task for public investment officers. Some important principles include firms to have a strong alignment of interest.

Principals of the external manager firm should have some skin in the game.

This includes the firm and the employees investing alongside their clients. Employee ownership is a powerful concept that aligns interests in asset management firms. This potent attraction can motivate employees and strengthen personnel retention. This leads to the issue that the majority of asset managers are large with a menu of products or “solutions.” For larger organizations, one possibility to tackle this is to give those employees ownership of the product, a profit-sharing scheme.

Another major point to draw out is robust compliance. Having an operational framework that can lend institutional investors clarity on their risk exposures is priceless. Third, liquidity plays a paramount topic for investors. If one key investor leaves, how will it affect the fund?

Last, when selecting investment managers that plan on capturing alpha, investment officers need to analyze their investment strategy. Is it unique; is this really a beta strategy in disguise? Is this external manager generating excess risk-adjusted returns?

Grant & Eisenhofer Reveals Fortis Investors to Receive $1.5 Billion in Mega Settlement

Published

on

Law firm Grant & Eisenhofer won a landmark case for its clients after a seven-year legal duel in Dutch courts. On July 13, 2018, the Amsterdam Court of Appeals officially approved the largest securities settlement ever reached in Europe, paving a path for international insurance company Ageas N.V./S.A. to begin payment of US$ 1.5 billion (€1.3 billion) to multiple groups of institutional and individual investors from Europe and the United States. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

State Street to Buy Charles River Systems

Published

on

State Street Corporation inked a deal to acquire Charles River Systems, Inc. (Charles River Development), a provider of investment management front office tools and solutions. Under the terms of the agreement, State Street will purchase Burlington, Massachusetts-based Charles River Development in an all-cash transaction for US$ 2.6 billion. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

FINMA Announces Rothschild Bank Broke Anti-Money Laundering Rules over 1MDB Fiasco

Published

on

The Rothschild Bank AG and one of its units called Rothschild Trust (Schweiz) AG got slapped with serious violations of anti-money laundering in regard to the 1MDB scandal. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Popular

© 2008-2018 Sovereign Wealth Fund Institute. All Rights Reserved. Sovereign Wealth Fund Institute ® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. No affiliation or endorsement, express or implied, is provided by their use. All material subject to strictly enforced copyright laws. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. SWFI is a minority-owned organization.